That is the implication of a NYT Dealbook post that reported JPMorgan's claim that parts of the Dodd-Frank bill will favor European banks. If JPMorgan's claim is correct, then it means that U.S. consumers need to worry less about any potential increase in the cost of financial services that could result from better prudential regulation. JPMorgan is claiming that European governments are willing to incur the cost of subsidizing risky practices of their banks (think Iceland).

Economists would argue that this is pure gain to U.S. consumers, just as they argue that being able to get low cost textiles and steel from China or India is a gain. If European subsidies make U.S. financial services uncompetitive, then the U.S. should simply focus on the areas in which it enjoys a comparative advantage.

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